Agent Maria in Hattiesburg, Mississippi is representing buyer David as his exclusive buyer's agent. During negotiations on a home listed by another firm, David tells Maria in confidence that he is willing to pay up to $285,000, even though his initial offer is $265,000. The seller's agent asks Maria directly: 'What is the highest your buyer will go?' Under Mississippi agency law, what must Maria do?
Correct Answer
D) Refuse to answer and maintain David's confidential information as required by her fiduciary duty of loyalty
Under Mississippi agency law (Miss. Code Ann. §73-35-21 et seq.), a buyer's agent owes the client fiduciary duties including loyalty and confidentiality. David's willingness to pay up to $285,000 is confidential negotiating information that Maria must protect. Disclosing this information to the seller's agent would be a direct breach of Maria's fiduciary duty of loyalty and confidentiality to her client David. She must refuse to answer the question.
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Related Topics & Key Terms
Key Terms:
Related Concepts
An agency relationship created when a principal's actions or words lead a third party to reasonably believe that an agent has authority, and the principal fails to correct this belief.
An agency relationship created when a principal approves or accepts an agent's previously unauthorized actions, effectively granting authority after the fact.
The legal requirement for real estate agents to inform all parties about who they represent in a transaction, typically provided at first substantive contact.
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